The 17-year-old Germany youth international is currently recovering from a meniscus injury that has kept him out since June, but his long-term future is already becoming an issue for the Bundesliga champions.
According to Sky, Bayern Munich are in talks with Prescott over a contract extension, although negotiations are proving difficult.
The main problem is the lack of a clear pathway into the first team. Bayern have identified Jonas Urbig as their long-term first-choice goalkeeper, potentially leaving Prescott facing a lengthy wait for regular senior opportunities.
Prescott has nevertheless already experienced being around the first team. He was included in Bayern's Champions League squad during the 2025/26 campaign and was also named among the substitutes for several senior fixtures.
The goalkeeper joined Bayern from Union Berlin's academy in 2023 and has progressed through the club's youth system. He also represents Germany at youth level and has attracted attention with his performances for Bayern's younger sides.
His current contract runs until June 2027, meaning Bayern still have time to reach an agreement, but the club will be wary of allowing one of its highly regarded goalkeeping prospects to enter the final months of his deal.
Prescott is also understood to have plenty of alternatives. Sky reports that several clubs in Germany and abroad are interested in signing him should he decide that his development would be better served elsewhere.
For Bayern, the challenge is therefore not simply persuading Prescott to stay, but convincing him that there is a realistic route towards senior football despite Urbig's position in the club's plans.
With his contract approaching its final year, the coming months could prove decisive for the teenager's future.